Frivolous Ninth Circuit Bankruptcy Appeal Results in Sanctions

The appeal stemmed from an unsuccessful motion to disqualify the Montana judge overseeing the developer's bankruptcy case. After the motion was denied, the developer, Timothy Blixseth, and his bankruptcy attorney, Michael Flynn, appealed to the Ninth Circuit.

The Ninth Circuit denied the appeal in 2014, and subsequently issued an order to show cause why the two shouldn't be sanctioned for filing a frivolous appeal.

The Ninth Circuit ordered the two men to pay $500 damages each, plus reimbursement of the attorney fees and costs incurred defending against their appeal.

The Court reasoned that Blixseth failed to backup his accusations "with even a shred of credible evidence" and Flynn had a "propensity for distortion" that breached his duty of candor in dealing with the Court.

un·der·dog

noun

1. a competitor expected to lose in a fight.

2. a person with little status in society.

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